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South Asia Investor Review is focused on reporting, analyzing and discussing the economy and the financial markets of countries in South Asia, including Pakistan, Bangladesh and Sri Lanka. For investors looking to invest in emerging markets beyond BRIC countries (Brazil, Russia, India and China), this blog is designed to help international investors looking to learn about investing in South Asia with focus on Pakistan. Riaz has another blog called Haq's Musings at http://www.riazhaq.com

Project Azm: Pakistan to Develop 5th Generation Fighter Plane

Pakistan has announced plans to develop and produce 5th generation fighter plane, according to media reports. It's part of Pakistan Air Force's highly ambitious Project Azm that includes building Kamra Aviation City dedicated to education, research and development and manufacturing of advanced fighter jets, unmanned aerial vehicles (UAVs) and weapon systems.

Pakistan's JF-17 Jet Fighter

Human Capital:

Development of a new advanced fighter is a wide-ranging effort that will encompass building human capital in a variety of fields including material science, physics, electronics, computer science, computer software, electrical engineering, mechanical engineering, aerospace engineering, avionics, weapons design, etc etc.

Air University:

Pakistan Air Force's Air University, established in 2002 in Islamabad, will add a new campus in Kamra Aviation City. The university already offers bachelor's master's and doctoral degrees in several subjects. Pakistan Air Force Chief Sohail Aman told Quwa Defense News that the campus will “provide the desired impetus for cutting-edge indigenization programs, strengthen the local industry and harness the demands of foreign aviation industry by reducing … imports and promoting joint research and production ventures.”

Defense Exports:

Air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of Pakistan manufactured airplanes range from lower cost to ease of acquisition, maintenance and training.

Pakistan started developing defense hardware for imports substitution to reduce external dependence and to save hard currency. Now the country's defense industry is coming of age to lead the way to high value-added manufactured exports.

Pakistan Super Mushshak Trainer Aircraft

Nigerian Air Force is the latest to announce purchase of Pakistan made Super Mushshak aircraft after the United States' refusal to sell to Nigeria, according to American periodical Newsweek. Nigerian Air Force chief Air Marshal Sadique Abubakar was quoted by the Nigerian media as saying that "Pakistan has accepted to sell ten trainer airplanes. And that is why the Pakistan Chief of Air Staff is coming for the induction ceremony which is going to take place in Kaduna".

Several other countries are in the process of making decisions to purchase aircraft from Pakistan. A report in Pakistan's Express Tribune newspaper says that Turkey has decided to buy 52 Super Mushshak trainer aircraft. The Tribune also reported that Azerbaijan may buy a couple of dozen JF-17 Thunder fighter jets jointly developed by Pakistan and China.

Along with exporting existing hardware, Pakistan is continuing its efforts to enhance the capabilities with new versions. For example, fighter-jet JF-17’s Block III is expected to open up new opportunities for Pakistani defense exports.

The new JF-17 Block III will be a twin-seat trainer version with advanced Active Electronically-Scanned Array radar and mid-air-refueliling probe. It will use new composite materials to increase its performance, besides addition of other updates in cockpit and weapons’ pods, according to Pakistani media reports.

Pakistan's Defense Industry Collaboration With China, Turkey:

Growing defense collaboration between China and Pakistan irks the West, according to a report in the UK's Financial Times newspaper. The paper specifically cites joint JF-17 Thunder fighter jet, armed drone Burraq and custom AIP-equipped submarines as examples of close cooperation between the two nations.

More recently, Pakistan has also begun to collaborate with Turkey in developing arms. In particular, Pakistan has been mentioned as a prospective partner in the TFX, Turkey’s next-generation fighter effort.

Pakistan's bitter experience with the unreliability of its cold war allies as weapons suppliers has proved to be a blessing in disguise. It has forced Pakistan to move toward self-reliance in production of the weapons it needs to defend itself from foreign and domestic enemies.

It all started back in 1965 when the US and its western allies placed an arms embargo on Pakistan during war with India. The bitterness grew stronger when the US forced France to cancel its contract to supply a breeder reactor to Pakistan in 1974 soon after India conducted its first nuclear test.

Khushab Nuclear Reactor:

Fortunately for Pakistan, the French had already given Pakistanis scientists drawings and specifications before canceling the breeder reactor contract. Work on Khushab reprocessing plant stated in 1974 when Pakistan signed a contract with the French company Saint-Gobain Techniques Nouvelles (SGN). In 1978, under U.S. pressure, France canceled the contract. Pakistan then proceeded to indigenously produce its own nuclear breeder reactors at Khushab. Four such reactors are now operating to produce plutonium for Pakistan's nuclear weapons program. Having done its first nuclear test in 1998, Pakistan now has a large and growing nuclear arsenal it needs to deter any enemy adventurism against it.

Babar Cruise Missile:

Since MTCR (Missile Technology Control Regime) prevented Pakistan from acquiring delivery vehicles from other countries, the country had to develop its own ballistic and cruise missiles to carry nuclear weapons.

The story of Babar Cruise Missile development is particularly interesting. It is believed that Pakistani engineers learned the technology by dismantling and studying a US Tomahawk cruise missile that fell in Pakistani territory when President Bill Clinton fired these missiles to target Al Qaeda in Afghanistan.

JF-17 Thunder Fighter:

The development of JF-17, a modern highly capable and relatively inexpensive fighter jet, is the crowning achievement to-date of the Pakistan-China defense production cooperation. It's being deployed by Pakistan Air Force with Pakistan Aeronautical Complex (PAC) on recently rolling out the 16th Block 2 JF-17 aircraft for PAF's 4th squadron. The latest version is capable of launching a variety of nuclear and conventional weapons ranging from smart bombs and air-launched cruise missile Raad to anti-ship missiles.

Pakistan Aeronautical Complex (PAC) got its start decades ago by setting up maintenance facilities for advanced fighters like French Mirage and US F-16s and by manufacturing Mushshak and Super Mushshak trainer aircraft. It is now also building JF-17s as well as a variety of drones, including combat UAV Burraq being used in Pakistan's war against militants in Waziristan.

Nuclear-Capable AIP Submarines:

Pakistan is expanding and modernizing its underwater fleet with 8 additional AIP-equipped submarines. Four of these subs will be manufactured in Pakistan. These will reportedly be custom versions of Yuan class diesel-electric subs with additional wider tubes from which cruise missiles can be launched. A key requirement for these submarines is to be stealthy—and the AIP-equipped Yuan class is indeed very quiet. The trick is in the submarine’s air-independent propulsion fuel cells, which provide power under the surface as the diesel engines—used for running on the surface—rest and recharge. Though relatively limited in range, this system is quieter than the nuclear-powered engines on American and Russian submarines, which must constantly circulate engine coolant.

Arms as Pakistan's Cottage Industry

Pakistan has a long history of arms manufacturing as a cottage industry. The dusty little town of Darra Adam Khel, only a half-hour drive from Peshawar, reminds visitors of America's Wild West. The craftsmen of this town are manufacturers and suppliers of small arms to the tribal residents of the nation's Federally Administered Tribal Areas who carry weapons as part of their ancient culture. The skilled craftsmen of FATA make revolvers, automatic pistols, shotguns and AK-47 rifles. Until five years ago, the list also had items such as anti-personnel mines, sub-machine guns, small cannons and even rocket launchers. Pakistani government has forced the tribesmen to stop making heavy assault weapons to try and prevent the Taliban and Al Qaeda from getting access to such weapons.

Pakistan's arms industry has come a long way from making small arms as a cottage industry in the last few decades. The US and Western arms embargoes imposed on Pakistan at critical moments in its history have proved to be a blessing in disguise. In particular, the problems Pakistan faced in the aftermath of Pressler Amendment in 1992 became an opportunity for the country to rely on indigenous development and production of defense equipment.

Pakistan's Military Industrial Complex

The country now boasts a powerful industrial, technological and research base developing and manufacturing for its armed forces a wide variety of small and large weapons ranging from modern fighter jets, battle tanks, armored vehicles, frigates and submarines to armed and unarmed aerial vehicles and high tech firearms and personal grenade launchers for urban combat. Some of these items were on display at IDEAS 2014, the 5-day biennial arms show held November 2014 in Karachi, Pakistan.

Praise by Vice Chief of Indian Army:

General Sarath Chand, the Vice Chief of Indian Army, has been quoted by the Indian media as saying: “I would even go to the extent of saying that Pakistan probably has a better industrial base, as far as defense production is concerned, than our country. In fact they export defense equipment abroad, definitely more than what we are doing.”

Summary:

Pakistan has announced plans to develop and produce 5th generation fighter plane as part of the country's Air Force's highly ambitious Project Azm that includes building Kamra Aviation City dedicated to education, research and development and manufacturing of advanced fighter jets, unmanned aerial vehicles (UAVs) and weapon systems. It's a recognition that the country can not be truly independent and have real national security unless it can develop and manufacture the arms it needs to defend itself. Pakistan is just starting to do it but it has a very long way to go. Pakistan is also beginning to export defense hardware to developing nations. Pakistan is recognizing the need to develop significant human capital and build a vibrant economy to make progress on this front.

The Acting President, Yemi Osinbajo, on Tuesday in Kaduna unveiled five Super Mushshak trainer aircraft acquired by the federal government to boost the capacity of Nigeria Air Force personnel in the country.The News Agency of Nigeria reports that the five aircraft are among the 10 acquired by the government from Pakistan.Mr. Osinbajo, who was represented by Minister of Defence, Mansur Dan-Ali, said Nigeria would welcome more support from friendly nations in its efforts to mow down Boko Haram insurgency.“I will not fail to mention that the decision to acquire the Super Mushshak aircraft from Pakistan has greatly promoted the existing bilateral relationship between the two sister countries.“It is our hope that we will continue to have the support and collaboration of other friendly nations, especially as we continue to combat insurgency and other security challenges in our country.”The Acting President, who also witnessed the graduation of 16 young student pilots from 401 Flying Training School, for the first time in 30 years, pledged that the administration would continue to invest in the country’s air arsenal.He recalled that President Muhammadu Buhari had two years ago pledged to build the capacity of the armed forces to effectively address Boko Haram insurgency and other national security threats.“These achievements are a demonstration of the commitment and visionary leadership of the administration,’’ he said.

Mr. Osinbajo stressed that the administration had remained committed to its desire of ensuring a peaceful country.“This has been a major security policy thrust of this administration.“We have since embarked on qualitative training and acquisition of new platforms and other supporting equipment for the Armed Forces and security agencies.“We have also sanitised the procurement process of military hardware with a view to eliminating corruption and inefficiency.“I make bold to say that we have achieved remarkable savings and infused quality into the system.“This has contributed in no small way to the acquisition of these new aircraft without any encumbrances.“It is now your responsibility to make good use of the aircraft as we await the delivery of the last batch by the end of the year.

India is going ahead with the acquisition of a fifth-generation fighter aircraft with Russia after an internal committee of the Ministry of Defence recommended that the purchase of the aircraft will duplicate India’s plan to develop a homegrown advanced medium combat aircraft, according to an MoD official.

“The internal committee, headed by retired Indian Air Force Air Marshal Simhakutty Varthaman, after studying technical parameters, has recommended India to acquire the Indo-Russian FGFA,” the MoD official said, referring to the fifth-generation fighter aircraft.

On the road ahead, the official said, a final agreement between India and Russia will be prepared that will pave the way for the release of over $5 billion toward India’s share to develop the FGFA

A preliminary development agreement was signed in 2010 between Russia’s United Aircraft Corporation and India’s Hindustan Aeronautics Limited, or HAL, when India paid its 50 percent share of $250 million toward initial development cost.

“A firm order of 108 will be put in the final draft of the agreement being prepared,” said an IAF official.

India and Russia have yet to finalize the work share for the production and technology transfer.

“Defence Research and Development Organization has been involved regarding the work share and transfer of technology, whereas the IAF is involved in finalizing the operational requirements and the number of fighters,” said Daljit Singh, retired Indian Air Force air marshal and defense analyst.

“The involvement [of both Russia and India] is huge in the FGFA program, wherein HAL will be doing many systems like flight controls, avionics with inputs of DRDO and other establishments,” said the MoD official.

#Indian T-90S tanks crash out of #TankBiathlon2017 military games after engine troubles. #India http://toi.in/QDOusa via @timesofindia

The Indian Army has crashed out of a 19-nation military competition after its Russian-origin T-90S main-battle tanks broke down due to mechanical snags in the grueling sport, even as the armoured fighting vehicles from Russia, China, Belarus and Kazakhstan raced ahead to enter the finals.The Army swears by the T-90S "Bhishma" tanks, which are being licensed-produced in India after the first 657 of them were imported for Rs 8,525 crore from Russia from 2001 onwards, though the DRDO accuses the force for cold-shouldering the indigenous Arjun tanks.

Sources said both the main and reserve T-90S tanks, shipped by India for the Tank Biathlon in the International Army Games at the Alabino ranges in Russia, developed "engine problems" after performing "exceedingly well" in the initial rounds of the competition."The fan belt snapped in the first tank. The reserve tank was then deployed for the race but its entire engine oil leaked just two kilometres before the end...it could not complete the race. It was sheer bad luck that led to the Indian team being disqualified," said an officer.

China, incidentally, has fielded its indigenous Type-96B tank in the competition, which includes firing on the tanks on the move by machine guns and anti-tank projectiles at a 2-km range while they negotiate rugged obstacles. Russia and Kazakhstan have deployed T-72B3 tanks, while Belarus has a modernized T-72 tank. The four are now competing for the top honours.

The T-90S tanks are the fulcrum of the Indian Army's "shock and awe" armoured battle plans. The force has 63 armoured regiments with around 800 T-90S, 124 Arjun and 2,400 older T-72 tanks as of now.

After the first 657 T-90S tanks were imported, the Avadi heavy vehicles Factory under the Ordnance Factory Board (OFB) is progressively "producing" 1,000 more tanks with Russian kits. In November last year, the defence ministry had approved the procurement of 464 T-90S tanks from the OFB for Rs 13,448 crore to add to the 536 tanks ordered earlier.

The DRDO remains upset+ that the Army has not yet ordered upgraded Arjun Mark-II tanks after inducting the first lot of 124 Mark-I variants, stressing the indigenous tanks did better than the T-90S tanks in comparative trials in 2010.The Army, however, contends that the 62-tonne Arjun, with its excessive weight and width, has poor operational mobility and flexibility. It has also launched a hunt for a "future ready combat vehicle (FRCV)" to meet its requirements after 2027.

Pakistan’s IT exports have hit an all-time high in the outgoing financial year of 2016-2017.

The country is witnessing a growth boom in the IT industry like never before and the government is also taking steps to support the IT infrastructure. And the numbers prove that the positive activity in the IT industry is delivering good results. According to ProPakistani, figures provided by the State Bank of Pakistan(SBP) indicate that the IT industry’s exports – which includes telecom, and computer and information services – in the outgoing financial year were of $938.640 million. The exports made in the previous financial year of 2015-2016 were worth $788.640 million. This indicates a year-on-year growth of 19%.

The Pakistan Software Exchange Board(PSEB), on the other hand, has reported figures that are three times greater than those reported by the SBP. According to the PSEB, the IT exports stand at a whopping $2.8 billion. There is a huge disparity in the numbers that have been reported by the SBP and the PSEB. However, it should be noted here that the SBP and the PSEB calculate the final figure of IT exports in a different manner. The PSEB reports in different sectors such as financial services, healthcare sector, e-commerce, e-health, but to estimate the final figure of total exports it takes into consideration all the exports done by local software houses to international clients.

If Pakistan’s IT industry keeps thriving at this rate, it certainly rings good news for the country’s economy. Could Pakistan hit the target of $6 billion software exports by 2020 or the target of $10 billion IT exports by 2025? We’ll have to wait and see. But the present certainly does look good.

Pakistan’s IT exports reached an all-time high for the outgoing financial year of 2016-17 with receipts of nearly $1 billion received through the banking channel.

According to the statistics provided by the State Bank of Pakistan, exports of IT industry classified as telecommunication, computer and information services surged to the level of $938.640 million in the last financial year.

The exports earning of the IT industry registered a double digit growth of 19 percent or $ 150 million from the financial year 2015-16 which stood at $788.640 million.

Exports of IT or ICT services – in broad terms – are largely delivered to countries and regions such as USA, Middle East and South African countries.

https://propakistani.pk/2017/08/15/pakistans-exports-cross-1-billion-fy16-17-sbp/?utm_source=all_users&utm_medium=notifPSEB StatsPakistan Software Export Board (PSEB), on the other hand, reported 3 times higher exports as compared to SBP’s numbers ($2.81 billion) through the input of companies/software houses.

PSEB’s estimation is based on the services various IT companies and software houses rendered to different countries but their reporting is done in different sectors such as financial services, healthcare sector and etc, as well as e-commerce, e-health and e-education.

Besides, the reporting of the freelance work is usually reported through overseas remittances. It should be mentioned that Pakistan is considered as the fourth largest freelance market in the world. The estimation of PSEB suggested that exports of freelancer of IT sector stands at more than $200 million per year.

Hence, the foreign exchange inflows in IT sector is not reported as its original potential.

Breakup of IT industry Exports of Services and Products

Source: State Bank of Pakistan

IT and Telecommunication is counted as a single industry in Pakistan either under one ministry, or by reporting the inflows of this sector.

SBP Is Working To Streamline IT Forex InflowsState Bank of Pakistan has taken a series of concrete steps to streamline exports income of the IT industry through the banking sector, which could reduce the under-reporting foreign exchange earning of IT and its enabled services.

The implementation of the instructions of the central banks to commercial banks and software houses will lead to identify the nearest figure of IT exports values on monthly and annually basis, which will also help all stakeholders to realize the potential and status of IT sector in the country.

6-Year Exports at a Glance

Source: State Bank of Pakistan

IT industry has the biggest potential in Pakistan with a capacity to expand itself domestically and internationally for exports of services when it comes to support of the government through policies and tax incentives.

Government’s Incentives for IT SectorThe government realizes that it has an important role in providing a conducive environment for the growth of the IT industry through infrastructure and HR development. The government has set a vision to enhance the exports of this sector to $5 billion per annum by 2020, which is not an impossible target.

The Turkish Armed Forces (TSK) has been trying to increase the number of its jet pilots after the Air Forces were hit by dismissals carried out after the failed July 15, 2016 coup attempt, widely believed to have been masterminded by the Fethullahist Terrorist Organization (FETÖ).

During the thwarted coup, 25 coup pilots flew with F-16 jets and 11 of them bombed strategic sites.

After the thwarted coup, it was revealed that a significant number of followers of the U.S.-based Islamic preacher Fehullah Gülen were in the Air Forces Command and 1,752 personnel were dismissed with state of emergency decrees.

According to official numbers, between 300 and 350 of those dismissed were warplane pilots and as a result the ratio of number of seats and the number of pilots decreased to 1/0.8, when it should be 1/1.5. The F-16 jets of American firm Lockheed Martin constitute a majority of Turkey’s warplane fleet with 240 jets.

The government, which has been focused on measures that would increase the number of jet pilots, is searching for F-16 trainers abroad. Pakistan was the only country to accept Turkey’s request.

However, the U.S. objected to Pakistan sending F-16 jet pilot trainers to Turkey, based on the agreement that U.S.-origin equipment’s purchase, sale, maintenance and training between third countries needed approval from Washington.

Upon the prevention of Pakistani trainers from coming to Turkey, Ankara renewed its request from the U.S. According to information obtained by daily Hürriyet, the Pentagon has once again rejected Ankara’s request, saying “there is no program regarding training pilots abroad.”

“If you send your F-16 pilots to the U.S., we can train them here,” the U.S. response read, while Ankara insisted on pilots receiving treatment in the bases in Turkey and in their own geographical conditions.

The fact that a majority of U.S. jet pilots are on active duty against the Islamic State of Iraq and the Levant (ISIL) in Iraq and Syria is reportedly among the reasons why Washington is reluctant to send pilots to Turkey at present.

In a one-day symposium – titled “CPEC vis-à-vis Opportunities for Aviation Industry and Way Forward” – the Government of Pakistan, the Pakistan Air Force (PAF), the Pakistan Civil Aviation Authority (PCAA) and members of the private sector collectively expressed hope that the China Pakistan Economic Corridor (CPEC) would spur growth in Pakistan’s aviation sector.

The Daily Times (Pakistan) compiled a report outlining the thoughts and aspirations of each symposium participant, which included the Federal Interior Minister Dr. Ahsan Iqbal, the PAF Chief of Air Staff (CAS) Air Chief Marshal (ACM) Sohail Aman and other leading officials and industry representatives.

Short-term objectives center on guaranteeing the security of CPEC projects. In this respect, the PAF had outlined its success in building a capable intelligence, surveillance and reconnaissance (ISR) element for providing situational awareness for all relevant parties, including its sister services the Pakistan Army and the Pakistan Navy. The PAF had also expressed confidence in its ability to counter asymmetrical threats through precision-guided airstrikes. It is also committed to providing search-and-rescue support.

The panel’s long-term aspirations echoed earlier government sentiments, namely of channeling projected economic growth from CPEC to effect industry gains. In this case, it is aviation.

PCAA Additional Director of Air Transport International Regulation Syed Muzaffar Alam projected that air travel in Pakistan will see an additional three million passengers in the next three to four years. Alam believed that this growth will present opportunities for growth in Pakistan’s commercial airline sector, be it new airlines or expanded ground support providers. In relation, PAF Air Vice Marshal Razi Nawab, the Deputy Managing Director of the Shaheen Foundation, stressed that investment be made in raising new maintenance, repair and overhaul (MRO) entities and airlines in Pakistan to support growth in air travel.

Interior Minister Dr. Ahsan Iqbal called for developing Pakistan’s aviation development and manufacturing sectors, particularly through “Technology Intensive Clusters” at Pakistan Aeronautical Complex (PAC) in Kamra. He also advocated for research and development, joint-ventures and public-private partnerships.

The participating stakeholders proposed raising a joint working group comprising of representatives from the Government of Pakistan, the PAF, PCAA, the private sector and academic institutions to steward the objectives discussed at the symposium.

Air University Vice-Chancellor Air Vice Marshal (retd) Faaiz Amir announced during a press conference on Tuesday that Pakistan’s largest technical and scientific Olympiad “Airtech’17” will be held at the main campus of Air University from December 7-10.

The Olympiad would include 26 technological competitions as well as other value-added events like an AirTech conference, embedded workshops, a national photography competition, project expo, an aeromodelling show, an air techno-show, bonfire, sky lantern show and more.

Air Chief Marshal Sohail Aman will deliver his keynote address as chief guest on the occasion of AirTech’17 Conference.

“AirTech’17 is designed to serve as a platform where a fair and competitive environment will be provided to young students to design, build & present technical solutions and perform innovative tasks in respective fields by utilising their creative skills blended with their scientific academic knowledge and technical capabilities”, the Vice-Chancellor said during the briefing.

While talking to media, Students Affairs Deputy Director Ms Fazaila Ali Qazi said that the chief guest would deliver his keynote address on “leadership, education & society development” on December 7. It will include various topics related to robotics, artificial intelligence and other emerging technologies. Furthermore, student competitions will be held on the second day and would be divided into five key categories – robotics, mechanical, electrical, computer sciences and applied sciences.

A “TechnoShow” will be held on day 3 of the Olympiad. The show will include events like “AirBot”, “Robo War”, “Quadro Show” and “Robo Dance”. As a secondary activity, a workshop on international scholarships will also be held on the occasion. On day 4 (Sunday), a tremendous Air Show will be presented over F-9 Park in Islamabad. The Project Expo will also be held on the concluding day, followed by a sky lantern show.

A number of industry leaders, decision-makers and professionals are invited to appreciate students’ efforts and to identify opportunities to collaborate with students and discuss future prospects

AirTech’17 aims to enhance and polish the conceptual, analytical and practical skills and expertise of youth, with the intention of cultivating and nurturing their talent, thus enabling them to envision themselves to be the future of a dynamic and technologically advanced Pakistan.

Last week, the Pakistani Navy carried out the first-ever test launch of its Harbah anti-ship and land-attack cruise missile (LACM/ASCM). The test was carried out in the North Arabian Sea on January 3, according to a press release from Pakistan’s Inter-Services Public Relations (ISPR).

“The successful live weapon firing has once again demonstrated the credible fire power of Pakistan Navy and the impeccable level of indigenization in high tech weaponry achieved by Pakistan’s defence industry,” ISPR noted in a statement. “The missile accurately hit its target signifying the impressive capabilities of Harbah Naval Weapon System.”

The Harbah is thought to be derived from Pakistan’s Babur family of cruise missiles. Pakistan has tested multiple Babur variants, beginning with the ground-launched Babur-I to the submarine-launched Babur-III, which was first tested last January. Though ISPR made no comment on the missile’s payload capabilities, its origin in the Babur family would suggest that it could be converted for both conventional and nuclear payload delivery.

According to Pakistani media reports, Pakistan’s Ministry of Defense Production had planned to develop a missile system for the PNS Himmat by October 2018. According to the Ministry’s 2014-2015 yearbook, the Directorate General of Munitions Production (DGMP) had been tasked with “the indigenous (sic) developing of ship-borne system with Land Attack Missile [LACM] and Anti ship Missile” by that date.

The missile was launched from an Azmat-class fast attack craft, PNS Himmat. PNS Himmat was commissioned into the Pakistan Navy last summer after extensive sea trials. Along with PNS Himmat, PNS Azmat and PNS Deshat are likely to also operate the Harbah ASCM once the system is declared operational.

Pakistan’s test-firing of the Harbah came shortly after U.S. President Donald Trump threatened to end U.S. military aid to the country in a tweet. While U.S. aid does not go toward Pakistan’s indigenous strategic weapons research and development, the ISPR statement noted that Pakistan’s chief of naval staff, Admiral Zafar Mahmood Abbasi, said that Pakistan needed to “reduce reliance on foreign countries” and “emphasized the need to capitalize on indigenous defense capabilities.”

In a promotional video for the breaking-ground event for Air University’s Aerospace and Aviation Campus in Kamra, Pakistan Aeronautical Complex (PAC) revealed design concepts of unmanned aerial vehicle (UAV) designs made by the Aviation Design Institute (AvDI) which may be related to “Project Azm.”

Under Project Azm, AvDI – which is part of PAC – was tasked by the Pakistan Air Force (PAF) to design and develop a medium-altitude long-endurance (MALE) UAV.

While preliminary and tentative, AvDI’s mock-ups broadly mirrored the MALE UAVs being produced in China and Turkey, such as the Wing Loong as well as CH-4 and the Anka, respectively. However, technical specifics such as prospective powerplant, payload, hardpoints and weaponization were not disclosed.

In December 2017, the PAF CAS reportedly stated that the AvDI MALE UAV will materialize in 18 months.

The PAF Chief of Air Staff (CAS) Air Chief Marshal (ACM) Sohail Aman formally announced Project Azm in July 2017 in the inauguration event of the Kamra Aviation City complex, which is envisaged as the home of PAC, AvDI, Air University and other state-owned and potentially private sector aviation companies.

Recently, analysts belonging to the Center for Study of the Drone at Bard College, New York identified a Chengdu Aircraft Industry Group (CAIG) Wing Loong UAV stationed at PAF M.M. Alam in Mianwali by using commercial satellite imagery. It appears that the Wing Loong arrived to Mianwali in late November 2017.

Currently, it appears that Pakistan is continuing its tests of the Wing Loong, having flown it through 2016 under “experimental flights.” CAIG is also test-flying the improved Wing Loong II, which has a payload of 400 kg, top speed of 370 km/h, service ceiling of 30,000 ft and endurance of 32 hours. The Chinese press claim that the Wing Loong II secured its launch export orders before its flight, but it is unknown who has the drones on order, though it is said to be the largest overseas sale of Chinese drones to-date.

Notes & Comments:

The PAF’s UAV attack UAV is the Burraq, produced by the National Engineering and Scientific Commission. It can carry up two laser-guided air-to-ground missiles. Thus far, it appears that the PAF has been using the Burraq for time-sensitive and/or targeted strikes as part of its counterinsurgency (COIN) and counter-terrorism (CT) operations. The PAF has been using the Leonardo Falco and General Industrial & Defence Solutions (GIDS) Shahpar for intelligence, surveillance and reconnaissance (ISR) in its COIN/CT operations.

Pakistan began inducting the Falco in 2009 under a co-production agreement involving PAC and Leonardo. The Falco has a payload of 25 kg available for electro-optical and infrared (EO/IR) turrets. The Falco was later joined by the Shahpar, which has a payload of 50 kg and endurance of seven hours.

The introduction of MALE UAVs – be it the Wing Loong-series or a potentially original design by PAC and AvDI – would provide the PAF with increased attack capabilities and ISR coverages through the use of its drones. It could also spur the introduction of using heavier munitions, such as 100 kg precision-guided bombs, from drones. This would extend the use of these aircraft from time-sensitive strikes and targeted attacks against individuals to close air support (CAS)-level missions in COIN/CT, such as attacking moving vehicles and neutralizing enemy firing positions. In terms of ISR, the PAF can equip these new drones with synthetic aperture radars for real-time image intelligence and use ground-moving target-indication for target acquisition – this information could be provided to other airborne and/or land units via data-link. Pakistan can leverage the endurance of a MALE UAV to sustain a ISR coverage unit for a longer time period.

Turkish defence company Aselsan has secured a USD24.9 million contract from an overseas customer for the integration of its Aselpod electro-optical targeting pods into aerial platforms, according to a statement published by the Turkish Public Disclosure Platform (KAP) on 26 May.

Aselsan has secured a USD24.9 million contract to supply its Aselpod targeting pods for Pakistan's JF-17 fighters, according to Turkish media. (Aselsan)

The announcement was followed two days later by a report by Turkish newspaper Daily Sabahidentifying Pakistan as the customer, and pointing out that this is the second order for the system placed by the South Asian country.

"Aselsan realised the first Aselpod exports last June to Pakistan, which has re-ordered a year later. The said system will be used on the JF-17 aircraft that Pakistan has jointly developed with China," the paper said in an article that was republished by Turkey's Directorate General of Press Information.

In its 2015-2016 yearbook Pakistan's Ministry of Defence Production had listed a USD24.9 million purchase of eight Aselpod targeting pods for the country's JF-17 Thunder multirole combat aircraft.

According to Jane's World Air Forces , the Pakistan Air Force currently operates an estimated 86 JF-17s.

The latest deal between Pakistan and Turkey is yet another indication of the growing defence industrial ties between the two countries. Earlier this month Turkey signed a contract with the Pakistan Aeronautical Complex (PAC) Kamra for the procurement of 52 MFI-17 Super Mushshak primary trainers.

At the same time Pakistan's Karachi Shipyard & Engineering Works Limited (KSEW) signed a letter of intent (LOI) with Turkish defence engineering firm Savunma Teknolojileri Mühendislik ve Ticaret (STM) for the local construction of four Ada (MILGEM)-class corvettes for the Pakistan Navy.

Both deals were signed on 10 May at the 2017 IDEF defence exhibition in Istanbul in a ceremony presided over by Turkish defence minister Fikri Isik and Pakistan's minister for defence production, Tanvir Hussain.

It was a landmark occasion for Pakistan Air Force (PAF) as well as the whole nation, when the indigenously produced JF-17 Thunder shot down a slow speed target with BVR (Beyond Visual Range) and IR (Infrared) missile with a pin-point accuracy at Sonmiani firing range on Friday.

Chief of the Air Staff, Air Chief Marshal Sohail Aman witnessed the live demonstration, displaying PAF’s capability to successfully locate and destroy high/ slow speed moving targets by employing high-tech inventory of aircraft and missiles, said a PAF press release.

Addressing the ceremony, the air chief said, “We are thankful to Allah Almighty who has given us the strength to achieve this extraordinary milestone. The successful testing of these sophisticated weapons is a testimony of JF-17 Thunder’s multirole capabilities.”

He said it was a matter of immense pride that six PAF fighter squadrons had already been equipped with the pride of the nation JF-17 Thunder aircraft, making it the backbone of our aerial defence.

The air chief also lauded the hard work put in by PAF and Chinese personnel in making the event a success.

“The day marked a monumental episode in the glorious history of PAF as a state-of-the-art Weapon Test Range has been made operational to track the complete trajectory of the aircraft and launched missiles,” read the press release.

The facility, developed in collaboration with Chinese authorities, is equipped with real time tracking and measuring equipment to qualify the indigenously developed and procured weapon systems.

Earlier, Air Vice Marshal Haseeb Paracha, Air Officer Commanding, Southern Air Command received the chief guest on his arrival at the venue. High ranking PAF officers along with civil and military officials also witnessed this historic event.

Pakistan needs a balanced mix of quality skilled workers, technicians, technologists, engineers, researchers and development scientists to promote the country's industrialization. National University of Technology is Pakistan government's answer to fulfill this need.

https://youtu.be/ZDQ2dy3cBSY

The problem with Pakistan’s technological education hitherto has been a surfeit of theory adept engineers, who lack practical skills upon graduation and are therefore of limited use for industry that demands hands on technologists, who could run industrial processes with the desired degree of competence. NUTECH seeks to fill that void through degree programs that will give both respectability and international recognition to the technologists who would undergo four year degree programs in different disciplines of engineering technology. These engineering technology graduates would be exposed to a curriculum geared towards practical aspects of technology that come in handy for an industrial employer. While the engineering degree holders would concentrate on designing and policy aspects the graduates of NUTECH would be focused on actual execution of technological tasks on shop floor. With a practical orientation these engineering technology graduates would already be adept in engineering practices on graduation unlike a normal engineering graduate whose learning starts upon graduation.

The production of top quality engineering technologists accredited to top class international technology regimes like the ‘Dublin, Sydney, and Bologna Accords’ would be a big shot in the arm for our human resource starved industrial sector. As a pioneer technology university under the Ministry of Education and affiliated with the Higher Education Commission, the University is charged with forging a direct linkage with the industry. While NUTECH would be mainly conducting Degree Programs, it is capable of reaching out to less developed areas through its widespread network of technical and vocational training institutes, producing skilled workers for the industry. With more focus on hands on practical training and inclusion of the industrial sector as a stakeholder in designing of curricula, it would synergise the academic output for the benefit of industry.

Pakistan that has suffered because it has completely bypassed industrial development by taking a shortcut to the services sector. Without industrial sinews, no country in the contemporary world can enjoy sustainable economic development. The time has come to correct that egregious flaw in our national development planning through sustainable initiatives. NUTECH is one such initiative, which was long overdue.

Pakistan on Wednesday (in June 2017) became a full signatory of the Washington Accord that facilitates mobility of engineering graduates and professionals at the international level.

Pakistan became the full signatory of Washington Accord on June 21, reported Dunya News.

As a result of the new agreement, the engineers from Pakistan would no further have to take exams for getting new jobs and admission abroad.

In the first stage, graduates from UET Lahore, UET Taxila, GIK and NUST would benefit from the new agreement.

Pakistan was granted provisional membership of the Washington Accord in the year 2010.

The Washington Accord, signed in 1989, is an international agreement among bodies responsible for accrediting engineering degree programmes.

It recognises the substantial equivalency of programs accredited by those bodies and recommends that graduates of programs accredited by any of the signatory bodies be recognised by the other bodies as having met the academic requirements for the entry to the practice of engineering.

At present, the Washington Accord member countries include Australia, Canada, Taiwan, Pakistan, Hong Kong, India, Ireland, Japan, Korea, Malaysia, New Zealand, Russia, Singapore, South Africa, Sri Lanka, Turkey, the United Kingdom and the United States.

Islamabad: This national policy for Technical and Vocational Education and Training (TVET), sets out for the first time in our country’s history – the commitment to invest in skill development is vital fast-changing and transforming global economy. The government is committed to increasing access, relevant and the quality of technical &vocational training. We are improving higher education provision. But as this TVET policy document demonstrates so clearly, as a nation we must develop skills to transform on youth into an asset-instead of a burden. The government of Pakistan has stoic resolve and commitment to ensure the implementation of the TVET policy, encouraging technical and vocational training for national and international labour markets.

TVET policy envisages the need for expansion of provision and a greater role for the private sector. It also ensuring the creation of a national quality assurance and qualification system. The importance of developing a new approach to planning and implementation is also part of this policy. This involves partnership working and greater emphasis on performance, accountability and evidence-based decision-making.

NAVTTC Chief Zulfiqar Ahmad Cheema has said that National TVET Policy is an important milestone towards strengthening the TVET sector which would contribute to boost our economy.

“This is indeed a historic moment for us and a clear demonstration of the importance of skills development to achieve sustained economic growth, to increase productivity and to provide opportunities for people to contribute to the economy and to their communities, particularly the country’s growing young population”, he said.

The Head of NAVTTC thanked the cabinet members, provincial TEVTAs, development partners of TVET Reform Support Program, GIZ, Industrial sector of Pakistan and the industrial sector for their cooperation and support.

The National TVET Policy has following salient features:

Secure a national commitment to the importance of skills development to achieve sustained economic growth, to increase productivity and to provide opportunities for people to contribute to the economy and to their communities, particularly the country’s growing youthful population.

Increase the number and quality of training opportunities so that in the short-term at least one million youth will be trained each year. By 2025, the objective is to train 20 percent of all school-leavers, in addition to up-skilling and re-skilling existing workers. Such expansion will not be achieved by the public sector alone and the active engagement of the private sector will be required.

To introduce a national standards-based qualification, assessment and certification system.

To design and deliver competency-based education and training programmes that concentrate on the skills required to perform jobs.

To forge new partnerships between the public and private sectors and to encourage employers to train more directly and to contribute to the reform of public TVET provision.

Maintenance and expansion of the export of labour by encouraging people to obtain internationally recognized qualifications.

Encourage the informal sector of the economy by providing people with opportunities to gain formal certification. Continue the reform and revitalization of the TVET sector.

Development of an integrated TVET to strengthen collaboration and consultation with the provincial TEVTAS.

#Pakistan Positioning For #Aerospace Services Growth. Pakistan is hoping to lean on skills and experience garnered from assembling jet trainers and combat #aircraft in a bid to attract international aerospace companies to invest. #defense #aviation http://aviationweek.com/defense/pakistan-positioning-aerospace-services-growth

Pakistan is hoping to lean on skills and experience garnered from assembling jet trainers and combat aircraft in a bid to attract international aerospace companies to invest. Islamabad is pouring money into the creation of its first aerospace cluster, the National Aerospace Science and Technology Park (NASTP), part of its future vision to create an Aviation City around Kamra, home to the country’s aerospace efforts. The NASTP aerospace cluster will be located at Kamra, west of ...

#Turkey's STM will organize training in #cybersecurity and #infornation #tech at #Pakistan Air #University; organize international conferences; give consultancy to research projects and support infrastructure for National Cyber Security Center at Air Uni. https://www.armyrecognition.com/ideas_2018_news_official_show_daily/ideas_2018_stm_signs_dou_for_pakistan_cyber_security.html

At IDEAS 2018, a Document of Understanding (DoU) was signed by STM and Pakistan Air University under the leadership of the Presidency of Defence Industries (SSB) of the Presidency of Rebuplic of Turkey. With this agreement, STM will provide significant solutions in integrated cyber security, big data and IT domains.

STM SavunmaTeknolojileriMühendislikveTicaret A.Ş. expands its business in Pakistan. Following the cooperation in naval programs under the leadership of the Presidency of Defence Industries, it now moves to different areas.

The signing ceremony was held with the participation of Mustafa Murat Şeker, SSB Vice President; Murat İkinci, STM General Manager; Air Vice Marshal Faaiz Amir, Vice Chancellor of Pakistan Air University; and officials. The agreement will increase the cyber security capabilities of Pakistan Air University, which sets up cyber security strategies of Pakistan and is responsible for the establishment of Pakistan’s National Center of Cyber Security (NCCS).

STM will organize special training and internship programs in cyber security and IT for Pakistan Air University students and faculty; organize international conferences and workshops; give consultancy to research projects in graduate programs; and support the infrastructure for the establishment of the National Cyber Security Center (NCCS) at the university. This agreement aims to increase the national cyber security capabilities of the friendly country Pakistan thanks to STM's integrated cyber security efforts and capabilities.

During the 2018 International Defence Exhibition and Seminar (IDEAS), the Pakistan Air Force (PAF) Chief of Air Staff (CAS) Air Chief Marshal (ACM) Mujahid Anwar Khan stated that Project Azm, the PAF’s next-generation fighter, was “indigenous” and “not dependent upon western or eastern partners.”

The statement outlined an ambitious scope, to say the least. However, one would be right to be skeptical considering that Pakistan lacks the industrial inputs necessary to design and develop such a fighter. There are a handful of countries in the world with all those inputs; in most cases, a foreign partner is needed.

In his statements before retiring, the previous CAS, ACM Sohail Aman, had said (in December 2017) that “Pakistan is engaged with Chinese experts in manufacturing the next generation aircraft.”

This is the most realistic scenario because — besides the fact that China is Pakistan’s top defence partner — but because China is the most accessible turnkey industrial power available to Pakistan. One can argue that besides the US, France, Russia, and China, there are no countries that can contribute to any part of a next-generation fighter. But for Pakistan, the US, France, and Russia are non-factors in this respect.

Recently, the New York Times reported that a proposal was made to form “a special economic zone (SEZ) [in Pakistan]…to produce a new generation of fighter jets.” This SEZ would produce critical subsystems, such as “navigation systems, radar systems and onboard weapons.”

Based on the two aspects (e.g., the PAF stating that its next-generation fighter is ‘indigenous’ and the fact that Pakistan will likely need China), one might be hard-pressed to find alignment. However, it is certainly there, albeit with caveats – i.e., Pakistan will not be independent from all foreign partners…

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I am the Founder and President of PakAlumni Worldwide, a global social network for Pakistanis, South Asians and their friends. I also served as Chairman of the NEDians Convention 2007. In addition to being a South Asia watcher, an investor, business consultant and avid follower of the world financial markets, I have more than 25 years experience in the hi-tech industry. I have been on the faculties of Rutgers University and NED Engineering University and cofounded two high-tech startups, Cautella, Inc. and DynArray Corp and managed multi-million dollar P&Ls. I am a pioneer of the PC and mobile businesses and I have held senior management positions in hardware and software development of Intel’s microprocessor product line from 8086 to Pentium processors. My experience includes senior roles in marketing, engineering and business management. I was recognized as “Person of the Year” by PC Magazine for my contribution to 80386 program. I have an MS degree in Electrical engineering from the New Jersey Institute of Technology.
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